German-based lighting and electronics specialist company Hella will be moving its Nelson Mandela Bay operations to the Coega Special Economic Zone (SEZ), the company announced on Tuesday.
Hella Automotive South Africa is situated in Uitenhage and has been operating in the Bay for more than 40 years.
Hella said the new facility would be built with the aim of further strengthening the company’s operations by catering for both administration and logistics under one roof.
The facility is expected to be valued at more than R30m.
Hella is set to start operating out of its new facility in June 2019, in line with its new financial year.
Hella Automotive South Africa managing director Theo Theuner said the company had a clear focus on becoming a powerhouse in Africa, increasing both business and efficiency within the 18 Sub-Saharan African countries it was already supplying.
“Our move to the new facility will see Hella strategically neighbouring with some of the biggest automotive companies already in the development zone, namely First Automotive Works (FAW) and Beijing Automotive International Corporation South Africa (BAIC SA).
“We will also have a new training facility there for all our stakeholders, including our customers and suppliers.
“Moving to Coega and to where the business is happening and the harbour should improve our operational efficiency,” he said.
Coega Development Corporation marketing, brand and communications head Ayanda Vilakazi welcomed the move.
“It seeks to reinforce the Coega SEZ location as a gateway to Africa.
“Most importantly, the investment will contribute to much-needed jobs in Nelson Mandela Bay,” Vilakazi said.
Theuner said while the company would seek to implement a growth strategy in the future, the initial move would not see more people employed.
“We want to expand, but our current employees will first be transferred.
“Then, at a later stage, we [will] seek to employ additional people.”